Explore the ScaleUp Annual Review 2022

Select a section to expand and explore this year's review..

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Development Bank of Wales [2022]

Finance and Risk Capital

Impact for scaleups

£528m

direct investment

94%

outside of London

1,740

Welsh companies backed

£1.9bn

funds under management

Key sectors

Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink Healthcare

The Development Bank of Wales (DBW) was initially established as Finance Wales in 2001 by the Welsh Assembly Government. In October 2017, it was renamed as the Development Bank of Wales and strengthened as a national financial institution with greater scope to provide commercial funding to businesses in Wales.

It is a wholly-owned subsidiary of the Welsh Government, providing Welsh businesses with capital to start up, strengthen and grow, and directing public funds to where they can have the most impact. The bank provides loans, property loans, seed and acquisition finance and equity investments between £50,000 to £5m. The DBW Group is made up of the Development Bank of Wales, Angels Invest Wales and North of England fund manager FW Capital.

In the financial year ending 31 March 2022 DBW directly invested a total of £109.1m into more than 460 Welsh businesses – an increase of £3.6m compared to the previous year (excluding Covid-related loans). Just over half of the 519 investments (51%) were awarded to existing customers. 

DBW continues to focus on working with the private sector to maximise the flow of private capital in Wales. Co-investment in 2021/22 was £64.1m, an increase of £4.1m on the previous year, with £30.3m of the co-investment was for tech ventures. South East Wales businesses received the largest proportion of the amount invested (about 43%) with each of the other Welsh regions receiving around 30%.

Scaleups that it has supported include fintech Delio and software company Vizolution.

DBW co-invests alongside other banks, VCs, angel investors, crowdfunding platforms and grant funders. It has a network of dedicated, local account managers. Referrals are also made to Business Wales for business advice and support. The investor base held by Angels Invest Wales (AIW) now stands at nearly 300 angels and syndicates and 92 individual angel investments totalling £3.3m were made in the year. 

The DBW five-year plan aims to support over 2,200 businesses and create 20,000 jobs by 2027 with a focus on high-growth businesses.

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Archangels [2022]

Finance and Risk Capital

Impact for scaleups

89

Scottish companies backed

£161m

invested

3,647

jobs directly created

20

Scottish companies currently backed

£10m

average annual investment

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Established in 1992, Archangels says it is “the longest continuously operating angel syndicate in the world.”  Based in Edinburgh, Archangels aims to deliver returns for its investors while harnessing their experience and networks to fuel the success of Scotland’s entrepreneurs and innovators in technology and life sciences. The syndicate currently has around 120 members invested in a portfolio of 20 early-stage companies. The preferred level of investment is £250k to £2m and typically co-ordinates the investment of more than £15m per year. 

The companies in which Archangels has invested from 1992 to 2021 are estimated to have created over 4,000 jobs, generated aggregate turnover of at least £2.15bn and have contributed £1.43bn GVA to the Scottish economy.

Companies must fit the investment criteria of being based in Scotland; a technology or life science business with a B2B business model; having high growth potential with international sales potential; defendable technology; and qualify under the Enterprise Investment Scheme. 

The syndicate typically co-ordinates the investment of more than £10m per year in early stage Scottish companies. During the year to date, Archangels has invested more than £12m in some of Scotland’s most promising technology and life science companies including Integrated Graphene, Cytomos, Earth Blox, Administrate and BioCaptiva

Archangels has been recognised as an exemplar under the Angel Finance asset class as an important cluster within the Scottish financial ecosystem. While the capital provided by Archangels is not primarily scaleup capital, it provides businesses with patient money to help them on their scaling journey. 

Archangels helped in the creation of the Scottish Co-Investment Fund (SCF) which sees the public and private sector partnering to support risk financing of early-stage high-growth potential companies. SCF has increasingly participated in Archangels’ deals with a relatively steady proportion of total investment at around 25-30%. Archangels uses this stable relationship to increase leverage, particularly in later rounds. SCF’s participation offers Archangels’ portfolio companies further support including mentoring and other practical support from the public sector.

As well as financial investment, members contribute their time and expertise to support company growth including providing connections to relevant industry experience and contacts. Archangels has pushed its learnings into the wider angel community and beyond into the policy domain in order to facilitate improved performance and impacts economically. The open innovation approach taken by Archangels from an early stage has helped facilitate the wider growth of angel investing in Scotland. 

According to recent analysis conducted by the University of Glasgow’s Adam Smith Business School, the £161m invested by Archangels since 1992 has directly created 3,647 high-skilled jobs and indirectly created a further 1,500 jobs.

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Cambridge Angels [2022]

Finance and Risk Capital

Impact for scaleups

107

UK companies backed

31%

Follow-on investments

69%

Investments outside London

68

Growth-stage investments

Key sectors

Healthcare Life Sciences & Biotech Technology & Communications

Cambridge Angels is a group of more than 60 high-net worth investors who invest in and mentor high quality early-stage and scaling companies in Cambridge, London, Oxford and throughout the UK.

Typical funding requirements that Cambridge Angels meet are in the range of £150k to £1.5m – although several portfolio companies have raised significant follow-on funding from its members and the network’s VC partners over several funding rounds. There is a particular focus on deep-tech, and tools and technologies supporting healthcare.

The network’s membership has founded, invested in and led a large number of successful Cambridge-based companies in recent years, such as Abcam, Frontier Developments, Bango and Evi Technologies. Therefore, in addition to providing funding, Cambridge Angels also offers expertise, contacts and directly relevant experience to early-stage and scaling companies – in what it terms “smart capital from entrepreneurs to entrepreneurs.”

Emphasis is placed upon leveraging the collective experience of the portfolio and the angels.  Sessions are hosted in which angels and a network of professionals and associates provide portfolio companies with education sessions on topics such as exits and building leadership teams.

Cambridge Angels has invested in well over 150 companies in its 21 year history, with a current portfolio of 117 companies. 24 of the companies in the current portfolio are in the scaleup stage having received early-stage funding and support from Cambridge Angels at their seed stage and continuing to date. The network has supported scaleups such as Featurespace, Wazoku and Arecor.

According to the 2022 ScaleUp Index, Cambridge Angels is the top angel group that has invested in visible scaleups – with a participation of 44 investments between 2012-2021.

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London Business Angels (Newable Ventures)

Finance and Risk Capital

Impact for scaleups

58

UK companies backed

18%

Follow-on investments

43%

Investments outside London

34

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Newable Private Investing (originally London Business Angels) backs entrepreneurs with a network of more than 500 early angel investors, focusing on early stage and scaling businesses in medtech, AI, space, robotics and industrial technologies. 

The network invests via its own fund, curating syndicates and engaging with co-investment partners. In the past two years, the network has participated in more than 50 EIS investments raising £36m.

Scaleups that it has backed include Q-Bot, Hummingbird Technologies, Threads Styling, and Media Sense.

Newable has also launched three scale-up funds. The Newable Scale-up Fund 3 targets the funding gap that exists for companies which have potentially de-risked their technology, developed traction with customers and now seek funding to scale their commercial operations. It provides investors with a diversified portfolio of seven to ten qualifying companies per investment.

Scaling and scaleup businesses have access to a range of business support services from a team of business and innovation advisers, including help with business model innovation, including the development and implementation of business models that are new to the firm; support to progress new products or services; develop or refine their digital strategy; and achieve their sales and growth ambitions.; assistance with Intellectual Property (IP) awareness and commercialisation; access to further funding (eg via grants and other investors) and investment readiness and pitch preparation; support and advice services to access international markets including the development of a tailored export growth action plan; market insights; connectivity with buyers and partners overseas; and access to trade fairs; and support programmes for female-led and diverse founders.

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Accel

Finance and Risk Capital

Impact for scaleups

32

UK companies backed

54%

Follow-on investments

19%

Investments outside of London

30

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Describing itself as a “global partnership to work with the most innovative companies,” Accel is an early and growth-stage VC firm which invests in technology companies in the US, Europe and India.

Between January 2015 to June 2022, the fund participated in 70 fundraisings for 32 UK-based companies. 

It has recently invested in UK scaleups such as the fintechs OpenGamma, Genesis, SuperPayments, Monzo and Soldo, the car buying platform Carwow, design and collaboration platform Gravity Sketch, and zero food waste app Olio. The great majority of Accel’s investments in the UK are in companies based in London but it has also supported the north-west software development platform Raycast.

Between January 2015 to June 2022, the average turnover of companies supported by Accel was £89.7m with an estimated average number of 245 employees. 

In 2022, the firm closed a $4bn global, later-stage fund to provide expansion capital to promising companies within the firm’s global portfolio.  

With offices in San Francisco, London and India, the firm uses its network to enable portfolio companies to hire senior leaders, expand into new markets, and provide introductions to new customers. Accel runs events for its portfolio to encourage the sharing of good practice, such as its global SaaStock event, and publishes its annual Euroscape which lists the top 100 SaaS companies in Europe and Israel.

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Amadeus Capital Partners [2022]

Finance and Risk Capital

Impact for scaleups

46

UK companies backed

48%

Follow-on investments

52%

Investments outside of London

42

Growth-stage investments

Amadeus Capital Partners is a global technology investor that invests in companies requiring early investment and growth capital with global potential. Founded by Anne Glover and Herman Hauser in 1997, Amadeus now has a team of over 40. One-third of the firm’s early stage investment team are women.

The firm follows three investment strategies: providing seed, start-up and scaleup capital for early stage companies with exceptional IP based in, or growing from the UK; primary and secondary investments in high-growth technology companies; and growth capital investments in tech-enabled consumer and business services in emerging markets. It is focused on AI & machine learning, online consumer services, cyber security, digital health and medical technology, digital media, enterprise SaaS, fintech, regtech and insurtech. 

The firm has offices in London, Cambridge, Oxford, San Francisco and São Paulo. It is a partner with the British Business Bank on the Enterprise Capital Fund programme. Its latest £110m Amadeus V Technology Fund includes a cornerstone commitment by British Patient Capital

Notable scaleups in their current portfolio include chip designers Graphcore, graphene company Paragraf [see the scaleup story with CEO Dr Simon Thomas], cell and gene therapy manufacturing platform OriBiotech, Nuclera and PolyAi.

In the period between January 2015 to June 2022, the average turnover of companies in its portfolio was £4.1m and the estimated average number of employees was 50.

Alongside investment Amadeus supports scaling businesses with technical insight, operational experience and access to a global network. They connect portfolio companies to additional support for innovation and growth including access to mentors and NEDs.

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Balderton Capital [2022]

Finance and Risk Capital

Impact for scaleups

41

UK companies backed

49%

Follow-on investments

22%

Investments outside of London

37

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Founded in 2000, Balderton Capital focuses on Series A and B investments into European and US technology companies. It has backed more than 230 companies. It typically invests between $1-$20m into “companies with the potential to disrupt huge industries, and the ambition to scale globally” and says that it takes a long-term approach.

The fund primarily invests in businesses based in the UK, US and Europe. It takes a broad sector focus on technology and the internet as a whole. Around 90% of their investments in UK companies between January 2015 to June 2022 were at growth stage. Notable scaleups in the firm’s portfolio include Zego, Revolut, Lendable, Wagestream and Wayve

After announcing its first fully-fledged growth fund in June 2021, the firm also launched its $600m Fund VIII – its largest ever early-stage fund. 

The firm has a “Build platform” to provide talent, marketing, finance and legal services to support companies as they scale, and to connect founders and their team to an active peer community. The firm provides guidance on talent acquisition and global expansion, as well as publishing guides on topics such as employee equity schemes and optimising board structures. Scaling portfolio companies have access to the firm’s executive council, which consists of leaders in the global technology industry, and has “a CEO community” of more than 100 people, sharing guidance with one another in a private community. The firm has also launched a Sustainable Future Goals initiative, bringing together over 60 portfolio peers actively involved in sustainability and impact to share ideas and learnings, and has appointed its first “executive in residence,” to advise Balderton’s portfolio CEOs and founders on areas including SaaS metrics, strategy, marketing and US expansion.

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Beringea [2022]

Finance and Risk Capital

Impact for scaleups

39

UK companies backed

26%

Follow-on investments

26%

Investments outside of London

37

Growth-stage investments

Key sectors

Creative, digital, film, games & media Environmental Science & Technology Healthcare Professional services Technology & Communications

The firm invests in the UK, EU and USA, focusing on healthcare, cleantech, consumer, media, business services and technology. In the UK and EU, its typical initial investments are between £1-10m into companies with at least £1m turnover, tending to lead Series A or Series B rounds with further funding available for follow-on investments. Beringea manages more than $700m in funds in the UK and the US. In the UK, Beringea manages three VCTs, including ProVen VCT and ProVen Growth and Income VCT. It is also a co-manager of the Michigan Growth Capital Partners Funds in the USA.

Between January 2015 to June 2022 Beringea participated in 53 fundraisings, of which 14 were follow-on investments. Almost all (95%) were growth stage investments at the time of fundraising.

Current scaleups in its portfolio include the locum GP platform Lantum, psychometric test developers Arctic Shores, and fashion styling service Thread. The average turnover of companies supported by Beringea in the period between January 2015 to June 2022 was £18.1m and the average number of employees was 79.

The firm runs its own Scaleup Academy, an annual programme of events and training to help the leadership teams of its portfolio companies overcome barriers to scale, and emphasises its capabilities in assisting the transatlantic expansion strategies of its portfolio companies.

It has also been a leading figure in the creation of an industry initiative – ESG_VC – to support early-stage companies to measure, monitor and maximise their performance against key ESG metrics. The firm has been accredited as a Level 2 firm in the Diversity VC Standard, recognising it as developing and adopting best practice for diversity and inclusion throughout its operations as a VC firm. Currently, 42 per cent of Beringea’s UK investment team are women, as well as 40 per cent of its UK investment committee.

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BGF [2022]

Finance and Risk Capital

Impact for scaleups

500+

Companies backed

£3.5bn

Investment made

£1bn

of follow-on funding

72%

of funding invested outside London and the South East

Key sectors

Food & drink Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance

Since its formation in 2011, BGF has backed more than 500 businesses in the UK and Ireland. The investor supports a range of growing companies – early stage, growth stage and quoted – across every region and sector of the economy. On average, it invests in one company a week. 

BGF makes long-term equity investments in return for a minority, non-controlling stake in the companies it backs. Initial investments are between £1m-£20m and can be followed by significant follow-on funding. The ScaleUp Institute’s Female Founder Index has identified BGF as the most active institutional investor in women-led businesses for the past three years.

The company has 16 offices in the UK and Ireland. Roughly three-quarters (72%) of its investments are into companies based outside London and the South East. Scaleups it has backed include payments infrastructure company Paddle and recipe box business Gousto, both of which are unicorns valued at more than $1 billion. BGF has established a clean growth advisory board led by Baroness Brown, chair of the Carbon Trust, to accelerate efforts to invest in companies supporting the energy transition.

BGF has an internal team of nearly 200 combined with a 6,000-strong network of business leaders, sector experts and non-executive directors called the Talent Network. Part of BGF’s model is to connect portfolio companies with members of the Talent Network, who serve as non-executive directors as well as provide ad hoc consultancy services.  

The BGF model is internationalising. In 2018, Canada launched its own BGF while Australia did the same in 2020. Both are backed by a combination of banks and major investors.

In September 2022, BGF led the second annual Scaleup Week, a week-long series of virtual events, in partnership with the ScaleUp Institute.

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British Business Bank: Enterprise Capital Fund [2022]

Finance and Risk Capital

Impact for scaleups

675+

Companies backed

53%

Investment outside of London

£1.83bn

Total investment capacity of the programme

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

The British Business Bank’s Enterprise Capital Funds (ECF) programme combines private and public money to make equity investments in high growth businesses. It is designed to increase the supply of equity to UK growth companies and to lower the barriers to entry for fund managers looking to operate in the venture capital market. It is working with 33 Fund partners across the UK.

As at March 2022, 39 ECFs have been launched since their inception in 2006, supporting more than 675 innovative growing businesses across a range of sectors. The top five sectors supported by ECFs are SaaS, AI, industrials, TMT (technology media and telecommunications), and healthcare – 53% of the investments are outside of London.

The British Business Bank invests alongside VC funds on terms that improve the outcome for private investors when those funds are successful. The ECF programme has helped 30 fund managers to raise their first institutional fund and 89% of the fund managers they have invested in prior to 2016 have already gone to raise a further fund. The average size of an ECF has increased from £20m to closer to £60m during the lifetime of the programme.

Since inception to March 2022, the ECF programme has committed £1.06bn of capital, which has been matched by £0.77bn of private sector capital bringing the total committed to ECFs to £1.83bn. The bank operates a rolling investment programme for commitments to new ECFs and welcomes new applications from UK fund managers.

In March 2022, the Enterprise Capital Funds programme corner-stoned the raise of its 39th ECF, Zinc II, a venture builder focused on entrepreneurs that are solving societal problems.

The current fund managers include: Active Partners, Ada Ventures, Amadeus Capital Partners, Catapult Ventures, Dawn Capital, Edge Investment, Eka Ventures, Entrepreneur First, Episode 1, Epidarex Capital, Foresight Group, Form Ventures, Imbiba, IQ Capital, Jam Jar Investments, Longwall Ventures, Notion Capital, Panoramic Growth Equity, Passion Capital, Pentech, Redrice, Seraphim Capital, Superseed Ventures, Sure Valley Ventures, Sussex Place Ventures, VGC Partners, Zinc VC.

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Cambridge Innovation Capital (CIC) [2022]

Finance and Risk Capital

Impact for scaleups

30

UK companies backed

52%

Follow-on investments

80%

Investments outside London

26

Growth stage investments

Key sectors

Engineering / Advanced Engineering Healthcare Life Sciences & Biotech

Cambridge Innovation Capital (CIC) backs world-leading life sciences and technology companies with an affiliation to Cambridge. It was founded in 2013 by the University of Cambridge to create a trusted local firm that would provide early stage capital to promising life sciences and technology businesses emerging from the university – for which it is a preferred investor – and the Cambridge ecosystem. It is an exemplar of how universities and financiers can collaborate to support their scaleup communities.

CIC currently manages over £500m and has invested in 30+ companies. In the period from January 2015 to July 2022, CIC has supported 62 fundraisings of which 32 were follow-on investments. Nearly nine in ten (87%) were growth stage investments at the time of fundraising. Four-fifths were outside of London. CIC invests in disruptive, deep-tech businesses in sectors including, but not limited to, artificial intelligence, internet of things, quantum technologies, autonomous systems, therapeutics, medtech/diagnostics, digital health and genomics/proteomics.

Notable scaleups that CIC has supported include CMR Surgical, Congenica, PragmatIC Semiconductor and Microbiotica, a global leader in gut bacterial culturing.

CIC has worked closely with stakeholders in the ecosystem – such as the Babraham Research Campus, endorsed by the ScaleUp Institute – to establish new accelerators, such as Start Codon (founded in 2019) for life sciences and healthcare businesses which aims to speed up the process of going from “bench to product” and offers investment, mentoring and access to research infrastructure including laboratory space. CIC has also helped to establish, and co-owns, the DeepTechlabs accelerator for technology businesses, providing hands-on support to bridge the gap between translational research and ‘Series A’ ready businesses. Cambridge Innovation Capital will benefit from pre-emption rights in companies participating in the accelerators.

Its team brings to its portfolio companies deep domain and operational expertise from its past experiences as entrepreneurs, scientists, operators and investors. The team takes a hands-on approach including board participation, business planning and development, executive recruitment, commercialisation and scaleup.

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Crowdcube [2022]

Finance and Risk Capital

Impact for scaleups

988

UK companies backed

26%

Follow-on investments

44%

Investments outside of London

533

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Crowdcube invests in UK companies and has offices in Exeter and London.

Online equity crowdfunding platforms, on which businesses pitch to receive investment, have become an established conduit for finance among seed, early-stage and scaling businesses, bridging the gap from family and friends funding rounds and later, larger institutional rounds. The institutionalisation of equity-based crowdfunding continues as VC firms, professional and retail investors co-invest on and with the platforms. 

While the average amount raised on the platform is £800,000, with funding available as equity investment or mini-bonds, the size of investment rounds has increased in the past year. Since January 2015, there have been 533 growth stage investments made into UK companies. 

Food and drink companies, mobile apps, internet platforms and e-commerce have been the most popular sectors among companies raising finance on the platform. Notable scaleups to have repeatedly used the Crowdcube platform to access equity finance include what3words, Monzo and Revolut. 

The platform provides companies that raise funds via the platform with access to a help centre and a campaigns team, access to a network of founders, and support with marketing and investor relations. Recently, it has launched Cubex, a secondary marketplace to enable retail investors to buy and sell shares in high-growth private European companies. This reflects the maturing age, size and profile of companies raising capital via Crowdcube.

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Eight Roads [2022]

Finance and Risk Capital

Impact for scaleups

21

UK companies backed

36%

Follow-on investments

10%

Investments outside of London

21

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Eight Roads provides venture and growth-stage capital, investing in technology and healthcare companies that are in their scaleup phase.

With its origins stretching back to 1969 as Fidelity Ventures, the firm has its head office in London with other offices in Hong Kong, Beijing, Shanghai, Mumbai, Tokyo, Hamilton, Boston and Stockholm. Eight Roads invests in companies based in Europe, US, India, Japan and China.

It has backed 21 UK companies since 2015. Out of all these investments, nine in ten have been into London-based companies. Scaleups in which it has invested include fintech Duco and hotel management software company OTA Insight.

The firm says that it backs founders “with high conviction” and is selective about the number of investments it makes. Its principal investment team takes a patient capital approach which it says is appropriate for the long development times for healthcare companies, particularly in therapeutics. It offers guidance on a range of topics such as building sales teams, accessing new export markets through its online platform and also hosts international market events for portfolio companies.

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Envestors [2022]

Finance and Risk Capital

Impact for scaleups

66

UK companies backed

23%

Follow-on investments

53%

Investments outside of London

53

Growth-stage investments

Key sectors

Professional services Creative, digital, film, games & media Environmental Science & Technology Finance Food & drink Healthcare Life Sciences & Biotech Manufacturing / Advanced Manufacturing

Established in 2004, Envestors is an FCA regulated finance adviser in the UK which connects investors and scaleup businesses through its digital investment technology that provides a white label platform for accelerators, incubators and angel networks. It has facilitated over £100m of investment into more than 200 companies from its network.

In the period between January 2015 to June 2022, it supported 66 UK companies in 86 fundraisings. Four in five were at a growth stage at the time of the investment. Scaleups currently supported by Envestors include VoxSmart and Sphere Fluidics

Its Envestry for Scaleups provides a Software as a Service (SaaS) platform which can be used to automate the application process for businesses seeking support, showcase investment opportunities to investors in a secure area and allow its investors to track opportunities and manage their portfolio.

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Frog Capital [2022]

Finance and Risk Capital

Impact for scaleups

7

UK companies backed

36%

Follow-on investments

14%

Investments outside London

5

Growth-stage investments

Key sectors

Food & drink Healthcare Impact ventures / Social Impact Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance

Frog Capital is a scaleup stage investor focused on software-enabled businesses in Europe. It invests in companies in equity rounds of €5m to €20m in European software scaleups across two key themes – digital infrastructure and smart data – with annualised revenues of between €3m – €30m. 

To date, it has invested in over 60 companies around Europe. Notable scaleups in its portfolio include Modulr, Rated People, Evotix and OpenSignal

Frog Capital was endorsed by the ScaleUp Institute in 2021 as an exemplar of a fund that is acting as “a scaleup partner,” tailoring its support to match the unique needs of each business, helping with senior-level recruitment and introducing portfolio CEOs to other investment partners from their network. 

The firm’s website offers dedicated pages with scaleup insights, including thought leadership and toolkits to support and help scaleups on their growth journey. The firm has defined major elements which are essential for any CEO to succeed in the scaleup phase, and they provide expert guidance on execution, planning, strategy and resilience.

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Index Ventures [2022]

Finance and Risk Capital

Impact for scaleups

60

UK companies backed

35%

Follow-on investments

12%

Investments outside of London

52

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Describing itself as “a distributed, global company,” Index Ventures is an international venture capital firm with dual headquarters in San Francisco and London. It invests in technology-enabled companies with a focus on e-commerce, fintech, mobility, gaming, infrastructure/AI, and security. 

Between January 2015 to June 2022, the firm supported 60 UK companies in 93 funding rounds, of which 33 were follow-on rounds. Nearly nine in ten (87%) were at their growth stage at the time of the fundraising.

Index has supported scaleups such as classified ad platform Adzuna, online flower seller Bloom & Wild, regtech ComplyAdvantage, childrens’ computer kit company Kano and apprenticeship tracking service Multiverse

The firm argues that “what used to be venture capital’s primary product – capital – is no longer its main selling point. The next generation of entrepreneurs is looking for expertise and personal relationships with their investors, where we become partners, advisors, mentors and coaches.” 

The firm also produces Index Resources, comprising guides, podcasts, plans and playbooks for companies seeking to expand into the US and Europe, as well as a guide to stock options for rewarding talent.

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IP Group [2022]

Finance and Risk Capital

Impact for scaleups

82

UK companies backed

34%

Follow-on investments

88%

Investments outside of London

62

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Now 21 years old, IP Group is an FTSE-250 listed IP commercialisation company which has helped to develop more than 400 companies. With a focus on life sciences, deeptech and cleantech, it invests in university spin-outs at seed, venture and growth stages and assists them with the commercialisation of their new products and services, with technology transfer, IP licensing and protection. It continues to invest in portfolio companies as they scale. 

The firm has a long-term partnership model with UK universities and developed an approach to supporting businesses from “cradle to maturity,” including assistance with executive search and recruitment and raising growth stage capital from co-investors. It currently has partnerships with 17 UK universities, six US universities and nine universities in Australia and New Zealand. 

The company owns Parkwalk Advisors, an active EIS investor in university spin-outs of ‘hard science’ companies, and has stakes in Oxford Sciences Innovation and Cambridge Innovation Capital. Several of its portfolio companies have completed landmark corporate transactions with the highlight being Oxford Nanopore’s multi-billion-pound flotation. Other UK scaleups in its portfolio include Ultraleap, Crescendo Biologics, First Light Fusion and Istesso.

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LDC [2022]

Finance and Risk Capital

Impact for scaleups

56

UK companies backed

80%

Investments outside of London

26

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

LDC is the private equity arm of Lloyds Banking Group and has been an active investor in UK companies since 1981, during which time it has supported over 650 management teams and invested more than £5.5bn in mid-sized businesses. 

It backs management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions. Its initial investments are between £10m and £50m and it looks to invest £400m per annum. Its investment criteria are that a company must demonstrate minimum revenues of £5m with profits of £1m and a two-year profits history. 

The firm invests solely in UK companies and has 12 locations in the UK. It is accelerating its investment activity from 2022, with a pledge to back at least 100 new mid-market companies over the next five years.

Notable scaleups in its portfolio include Southampton-based equestrian brand LeMieux, Northampton-based e-commerce fulfilment company James & James, and programmatic advertising platform Blis.

In the period between January 2015 to June 2022, it invested in 54 companies whose average turnover was £28.6m and average employee count was 189.

Portfolio companies are provided with sector-specific guidance, access to an executive network, and peer network opportunities with other portfolio companies. A value creation team of experts is available to help identify particular pressure points and new growth opportunities, supporting management teams with projects from sales effectiveness, to digital marketing, procurement and operations.

It publishes an annual list of the 50 most ambitious business leaders which is now in its fifth year, celebrating “the leaders behind some of the UK’s most exciting mid-sized firms,” and has recently expanded and extended its partnership with The Prince’s Trust.

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Livingbridge [2022]

Finance and Risk Capital

Impact for scaleups

20

UK companies backed

13%

Follow-on investments

60%

Investments outside of London

14

Growth-stage investments

Key sectors

Healthcare Technology & Communications

Livingbridge is a 25-year-old private equity firm that has been investing in four sectors – healthcare and education, services, consumer and TMT – and has made more than 150 investments.

It typically makes investments between £5m to £100m, taking a flexible approach – it will provide growth capital, as well as funding management buy-outs and secondary buy-outs and replacement capital deals. It will invest in high-growth, entrepreneurial businesses with enterprise values of up to £300m.

The average size of its investment round into UK companies since 2015 is £12.4m. In the period between 2015 to June 2022, the firm invested a total of £211m in 23 UK companies in 27 fundraising rounds. The average turnover of those companies was £26.5m and their average number of employees was 151.

Scaleups in its portfolio include social media publisher Jungle Creations, telecoms services provider FluidOne, and circular economy pioneer World of Books.

The firm has offices in London, Birmingham and Manchester and an Australian office in Melbourne to make primary investments in the UK, Australia and New Zealand. It has an office in Boston and a US industry advisory board to support expansion and M&A in the US.

To support the growth strategies of its portfolio companies, Livingbridge has developed its “growth accelerators,” which it describes as “core value creation capabilities designed to unlock a business’s potential.” Its in-house growth acceleration team is made up of market experts principally covering international growth, corporate development, customer acquisition and retention, talent and technology. Its managing partner, Wol Kolade, is a founder of The 10,000 Black Interns programme, which will offer paid work experience across a wide range of sectors, providing training and development opportunities and creating a sustainable cycle of mentorship and sponsorship for the black community.

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MMC Ventures [2022]

Finance and Risk Capital

Impact for scaleups

53

UK companies backed

44%

Follow-on investments

100%

Investments outside London

22

Growth-stage investments

Key sectors

Technology & Communications

MMC has a strong track record in supporting scaleups. The firm manages funds for private individuals and institutions and has approximately $1.2bn under management. It backs “transformative” technology companies, investing approximately £30m per annum in new investments and follow-on capital. It is the first commercial venture capital firm in the UK to qualify as a B Corp.

Founded in 2000, MMC targets an initial investment of £1-5m and can support further growth of “knowledge intensive companies” with up to £20m. Its £100m Scale-Up Fund provides expansion capital to portfolio companies once they have grown beyond the limits of EIS investment, and can also participate in secondary transactions, offering liquidity to early MMC and third-party investors. 

Notable scaleups it has backed to date include Gousto, insurtech YuLife, mobile ticketing company Masabi and flower delivery firm Bloom & Wild

Portfolio companies benefit from a peer learning network programme, where companies are paired with a relevant counterpart to meet/zoom for one hour each month for six months – and there is also the flexibility to tailor the relationship to suit their individual needs.

MMC also assists investee companies in areas including international expansion, senior hiring, access to potential clients, corporate governance, fundraising, bank finance and exit. Its research team works closely with investee company founders to help businesses grow. Themed events are hosted regularly and podcasts and videos are available on their website.

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Molten Ventures (previously Draper Esprit)

Finance and Risk Capital

Impact for scaleups

42

UK companies backed

39%

Follow-on investment

43%

Investment outside of London

40

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Molten Ventures (previously known as Draper Esprit) invests in venture and growth-stage companies based in Europe. Founded in 2006, with offices in London, Dublin and Cambridge, it invests primarily in four sectors: consumer technology, enterprise technology, hardware and electronics, and digital health and wellness. 

The firm makes between 15 to 30 investments a year, including follow-on investments into tech companies that it believes are “poised for category leadership.” Notable scaleups which it has supported include microchip design firm Graphcore, blockchain security firm Ledger, and the fintechs Thought Machine and Form3.

In 2021 the firm moved its listing from AIM onto the Main Market of the London Stock Exchange with a secondary listing on Euronext Dublin. The firm says that this demonstrates how “publicly listed venture capital is a powerful force for supporting entrepreneurs on their own long-term journeys to outsized success” and that its “public listing and multi-fund model enable us to provide entrepreneurs with backing across their companies’ life cycles, fuelling the best businesses for longer.”

Between 2015 to June 2022, it invested a total of £2.15bn in 42 UK companies in 69 fundraising rounds. The average turnover of these companies was £24.5m and the estimated average number of employees was 155. 

In its financial year to March 2022, it made £311m of investments from its balance sheet, including £130m in follow-ons and £112m in primary investments, compared to £128m in the previous year.

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Notion [2022]

Finance and Risk Capital

Impact for scaleups

34

UK companies backed

49%

Follow-on investments

29%

Investments outside of London

32

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Notion invests exclusively in the European enterprise tech and B2B SaaS sectors. Located in London, it has made over 100 investments since its inception in 2009.

In the period between January 2015 to June 2022, Notion invested a combined £909m in 34 UK-based companies in 67 fundraising rounds. The average turnover of these companies was £14.8m and their average number of employees was 62.

Notable scaleups in its portfolio include revenue delivery platform Paddle and enterprise security firm Panaseer. It makes frequent follow-on investments. The average size of its investment round into UK companies since 2015 is £14.2m.

Over the past four years, the firm has conducted an annual Net Promoter Score (NPS) survey to gather feedback from founders and CEOs in the portfolio – as a consequence of the last survey, the firm is focusing its efforts on building up its relationships with international VCs, particularly those in the US, to support the expansion strategies of its portfolio companies. Its annual founder retreat has scored an NPS of 100.

Notion continues to lead and support Included VC, a 12-month programme designed to offer access for under-represented communities to the venture capital industry.

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Octopus Titan VCT

Finance and Risk Capital

Impact for scaleups

90+

High growth potential UK companies

£1.3bn

Funds under management

126%

Revenue growth by portfolio companies in 2020

880

Jobs created in 2020

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

VCTs are Government-led investment vehicles designed to encourage investors to support smaller, higher-risk companies.  According to the Association of Investment Companies, VCTs have made over 1,000 investments into 530 companies since 2018, amounting to £1.7bn with an average investment size of £1.6m. More than half (55%) have been follow-on investments.

Octopus Titan is the UK’s largest Venture Capital Trust (VCT) with approximately £1.3bn of funds under management. In 2017, the ScaleUp Institute identified it as an exemplar of how the wider VCT industry has the potential and capacity to provide assistance to all stages of scaleup growth. Since it was launched in October 2007, it has raised over £1bn of funds from over 20,000 shareholders and has invested in more than 140 pioneering companies. 

Titan VCT is managed by Octopus Ventures. It typically invests £1m-£10m in a first round investment and has the capability to follow on its investments up to £20m with the intention to hold a portfolio of largely unquoted technology companies that are VCT qualifying. It targets a 20% stake in a new company investment, and usually seeks to maintain this stake as the company grows. 

The portfolio consists of over 90 high-growth potential businesses in five main sectors: health, fintech, deep tech, consumer and B2B software. It has backed scaleups such as pet insurance provider Bought By Many, femtech company Elvie, used car platform Cazoo,and fashion platform Depop (since acquired by Etsy).

Since Titan launched in 2007, the Octopus Ventures team has grown from five to more than 65 people including its Venture Partners, a group of entrepreneurs and business experts who offer best-in-class expertise in areas such as leadership, sales and international expansion. Support for its portfolio companies also comes through a network of coaches and a “talent team” to specifically advise on talent, recruitment and retention. More than 50% of the investment team have founded a business themselves. 

Octopus Ventures has increased its investment team significantly and has added further operational support to ensure it continues to be able to make new investments and manage the expanding portfolio appropriately. In 2021 Titan has been investing along with funds from Octopus’ new Enterprise Investment Scheme (EIS) service, Octopus Ventures EIS, launched in Autumn 2020. The Octopus Group is the largest solar investor in Europe. They also invest in landfill gas sites, wind farms and biomass plants.

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Partech [2022]

Finance and Risk Capital

Impact for scaleups

16

UK companies backed

43%

Follow-on investments

25%

Investments outside of London

15

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Partech makes equity investments at seed, venture and growth stage, operating through five funds, with investments ranging between €200,000 to €50m.

With offices in San Francisco, Paris, Berlin and Dakar, Partech’s investment focus is on technology and digital businesses in the UK, US and Europe and is developing its presence in Asia and Africa. Its current portfolio is made up of 200+ companies in more than 30 countries.

In the period between January 2015 to June 2022, Partech supported 16 UK-based companies across 27 fundraising rounds, investing a total of £454m. The average size of its investment round into UK companies since 2015 is £16.8m. The firm has backed UK scaleups such as Privitar, Fresha and Vyne

In support of its portfolio companies, Partech provides coaching on strategy, operations, executive hiring, board structure, as well as preparation for M&A and build-ups. The firm has launched Partech Shaker, a nine-story building in central Paris designed for tech startups and scaleups.

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Scottish Enterprise Growth Investment Team [2022]

Finance and Risk Capital

Impact for scaleups

174

UK companies backed

38%

Follow-on investments

134

Growth-stage investments

£1.4bn

Private sector investment leveraged

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

The Scottish Enterprise Growth Investment Team (formerly known as Scottish Investment Bank) is the investment arm of Scottish Enterprise, Scotland’s national economic development agency. It operates across Scotland, working in partnership with Highlands and Islands Enterprise and South of Scotland Enterprise, seeking to ensure that businesses with growth and export potential have adequate access to growth capital, including equity and debt. 

SE Growth Investment Team supports companies to prepare to raise and access finance, provides a financial readiness service to help companies identify and secure appropriate sources of finance, and supports investee companies on an ongoing basis through portfolio management. 

Managing a suite of investment funds and working closely with private sector investors, SE Growth Investment Team’s evidence-based market interventions increase the supply of finance for companies in Scotland.

Its Scottish Co-Investment Fund (SCF) matches accredited investment partners up to a maximum of 50% of the total funding package, providing from £10,000 up to £1.5m in deal sizes typically ranging from £20,000 up to £10m, and its Scottish Venture Fund also invests alongside sophisticated private sector investors.

In the period between January 2015 to June 2022, Scottish Enterprise supported 174 Scottish companies across 281 fundraising rounds, investing a total of £380m. The average size of its investment round into UK companies since 2015 is £1.4m. The firm has backed Scottish businesses such as ENOUGH, Orbital Marine Power, Amphista Therapeutics and Intelligent Growth Solutions

SE Growth Investment Team has been recognised as an exemplar for its support of high growth businesses in their scaleup journey and its promotion of emerging sectors. SE Growth Investment Team plays an active role as a co-investor such as its work with the Scottish Angel ecosystem. With wider support from Scottish Enterprise, SE Growth Investment Team is an exemplar of a rounded local ecosystem approach to scaleup growth.

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Scottish Equity Partners [2022]

Finance and Risk Capital

Impact for scaleups

16

UK companies backed

24%

Follow-on investments

50%

Investments outside of London

13

Growth-stage investments

Key sectors

Technology & Communications

Scottish Equity Partners (SEP) is a late stage venture and growth equity investor focused on technology and technology-enabled companies based in the UK and Ireland, and selectively in other parts of Europe. It has offices in Edinburgh, Glasgow and London. Over the last 20 years it has invested in 160 companies.

The firm invests between £5m to £25m but also funds larger deals, co-investing with others, including its own fund investors. Between the period of January 2015 to June 2022, the firm has participated in 21 fundraisings for 16 scaling businesses, investing a total of £​​169m with an average fundraising size of £9.9m.

SEP plays an active and supportive role in the growth and development of its portfolio companies. It has a strong track record in supporting its portfolio companies with talent acquisition, building leadership capability, and assisting international growth.

Scaleups in its current portfolio include open source software company Tyk, handicraft digital platform LoveCrafts and the fintech Totally Money.

The firm, which is a signatory to the Women in Finance Charter, has a 38% female representation in its senior management positions. It provides financial support to the Strathclyde Entrepreneurs Fund, which provides early stage investment in companies and ventures run by University of Strathclyde staff, students and alumni. It has published its second annual “Investing Responsibly” report in which it benchmarks its portfolio companies’ performance on ESG issues.

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Seedrs [2022]

Finance and Risk Capital

Impact for scaleups

818

UK companies backed

43%

Follow-on investments

38%

Investments outside of London

415

Growth-stage investments

Key sectors

Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink

Acquired in November 2021 by US-based private investment platform Republic, Seedrs operates a pan-European equity crowdfunding platform. Since its formation in 2012, more than £2bn has been invested on the Seedrs platform and a total of 1,722 deals have been funded. 

In the period between January 2015 to June 2022, the average amount raised was £962,000 with just over half (51%) of the 1,426 fundraising deals being growth stage investments.

In the 12 months to June 2022, the platform has been used by scaleups such as Cheeky Panda [see our Scaleup Story], Spoke, Poq and Daisy Green.

To help liquidity, more than 700 companies have traded on Seedrs’ secondary market to date, with over 200 currently traded each month. Since launching its secondary market in 2017, there have been 50,000 transactions worth £21m.

In 2021, Seedrs introduced venture fund LP opportunities onto the platform, starting with a partnership with Passion Capital for its third fund enabling retail investors to back VC funds for the first time. 

An Alumni Club also serves Seedrs-funded businesses through a dedicated community featuring valuable tools, bespoke resources, curated events, discounts and an online community portal.

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